Bitcoin Plunges Below $84,000 as US Economy Surges Past Expectations
The US economy's rapid growth has sent shockwaves through financial markets, causing Bitcoin to plummet below $84,000. The S&P Global flash composite PMI unexpectedly rose to 58.4 in September, marking its fastest growth since July 2021. This sudden surge pushed the 10-year Treasury yield back above 5%, reviving fears of another Federal Reserve rate hike.
The rising yields and higher input costs have made non-yielding assets like Bitcoin less attractive, creating short-term downside pressure on crypto markets. Chris Williamson, chief business economist at S&P Global Market Intelligence, warned that firms' input costs have jumped by the fastest rate in four years, adding to upward pressure on selling prices and inflation.
The 10-year yield climbed to 5.058% after the release, while Bitcoin's price dropped within an hour of the data announcement. This sudden jump comes as a surprise, especially given that the Federal Reserve raised its benchmark rate just last week to speed up a return to 2% inflation.